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INCOME TAX – BUDGET PROPOSALS AFFECTING INDIVIDUALS
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....NCOME TAX – BUDGET PROPOSALS AFFECTING INDIVIDUALS<br>By: - Dr. Sanjiv Agarwal <br>Income Tax<br>Dated:- 10-3-2011<br><br>Nothing Much in Personal Taxation While Budget 2011 has done some damage on corporate taxation, there is not much done on personal taxation front. Though sops have been given to senior citizens and very senior citizens, there is only a marginal relief to assesses at large wi....
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....th basic exemption limit going up by just Rs 20000 (Rs 1.80 lakh to Rs 1.80 lakh) yielding a tax relief of just Rs 2060 only. The number of assesses who will benefit are also few thousand only . In case of women taxpayers , there is virtually no relief. One welcome proposal is the extension by one more year of the additional deduction in relation to Rs 20000 investment in long term infrastructure....
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.... bonds which means that taxpayers can invest upto 20000 in infra bonds in next financial year also and avail tax benefit of atleast Rs 2000 or more depending upon the tax slab they are falling in. Also, from April 2011, employer contribution to pension scheme will not be included in eligible amount under tax saving option of section 80C, meaning thereby that one can invest more in tax saving schem....
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....es and enjoy higher deductions. For small tax payers, a new simplified tax return form called' Sugam' shall be introduced. 'Sugam' implies accessible. It is also proposed to expand the facilities of e-payment services and e-filing of returns so as to make compliance easier and hassle free. A notification is also expected for exempting taxpayers with only salary income to file return as their part....
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....iculars are furnished by employers in their TDS returns. The budget proposals speak of itself that this year's budget has been over shadowed by forthcoming direct tax code as this is one budget where minimal tinkering has been done in the tax provisions. However, tax payers will be directly hit by tax proposals in central excise duty and service tax. Balancing the Young and old ones Indiain fut....
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....ure is going to be a youngerIndiawith nearly 70 percent ofIndiabeing of working age in 2025. Its demographic dividend of a relatively young population as compared to developed nations is an opportunity in the offing. The budget has addressed the higher education and skill development needs by a substantial higher allocation of funds, though no direct tax benefit has been given. The budget also of....
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....fers rich dividend to the senior citizens so much so that senior citizens can feel the saying 'old is gold'. The Budget has offered a three fold bonanza to senior citizens - lowered the qualifying age from 65 years to 60 years, enhanced he basic threshold exemption limit from Rs 2.40 last to Rs 2.50 lakh, an increase of Rs 10000 yielding tax benefit of 1000 and added to this is creation of a new c....
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....ategory of 'very senior citizens' who are octogenarians (80 or more years of age) who will be eligible for a higher basic exemption of Rs 5 lakh from next assessment year. Such numbers, however, would be in few thousands only but the FM earns the good will. If one looks at exemption limits, no specific favor has been done to women assessee as their exemption limit remains the same at Rs. 1.90 lak....
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....h whereas general limit goes up from Rs 1.68 lakh to Rs 1.80 lakh. However, women senior citizens will be covered under the benefit dolled out to senior citizens. Very senior taxpayers generally have income from pension, rentals and interest, dividend already being tax free in assessee's hands. Very senior citizens will not have to pay income tax up to income of Rs 5 lakh but will have to pay 20....
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.... % tax on income between Rs 3 and 8 lakhs. Thus, no part of their income would be subject to 10% tax. Certainly, the grey gets the golden edge in this budget , making their sunset years happier.<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....